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The Basis of Technical Analysis

First Steps: Step 4 of 7
Technical analysis focuses on trend analysis and explains how basic trend-following techniques are used.
Flip through the individual charts:

Chart 12: Recognizing Resistance
Resistance is the opposite of support. Resistance indicates price ranges where traders can assume that prices will either reverse at the resistance level or penetrate it only with great difficulty.

Resistance levels are price ranges that create resistance in the “buy” direction. Supports, on the other hand, are price ranges that provide support to “sell” prices.




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